Hong Kong stocks closed higher Monday as markets absorbed the news of faster China inflation last month and the strengthening of the yuan.
The Hang Seng Index rose by around 376.69 points, or roughly 1.4%, to end at 26,608.48. The Hang Seng China Enterprises Index jumped by 171.55 points, or 1.9%, to 9,220.08.
China's consumer price index rose 0.8% year over year in December, faster than the 0.7% increase the previous month and in line with analysts' forecast in a Reuters poll. Core inflation, which excludes volatile prices of food and fuel, rose 1.2% year-on-year in December.
A rally in yuan is also driving a stock rally in both mainland China and Hong Kong, the South China Morning Post reported. According to an analyst at Industrial Securities, Chinese assets could be due for a revaluation after the yuan breached the key 7 per U.S. dollar level after two and a half years.
Meanwhile, China's commerce ministry plans to further open up trade and raise consumption this year, it said following a key national conference. Plans include stimulating spending, promoting the "Shop in China" brand and refining trade-in policies, according to the Ministry of Commerce.
In corporate news, OmniVision Integrated Circuits (HKG:0501) made a stellar market debut in Hong Kong after shares of the fabless semiconductor design company closed at HK$121.80 per share, 16% higher than the offer price of HK$104.80.
